Patheon hikes revenue guidance for 2012
pharmafile | June 19, 2012 | News story | Manufacturing and Production | CDMO, Canadian, PDS, Patheon
Canadian contract development and manufacturing organisation (CDMO) Patheon reported a solid set of financial figures for the second quarter of fiscal 2012, leading it to increase its full-year revenue guidance.
Revenues came in at $181 million, up 6.8%, although if a one-off payment related to the cancellation of a significant contract this time last year was taken into account revenues would have risen by almost 19%, according to the company’s chief financial officer Stuart Grant.
Grant said in a conference call that encouraging revenue trends in the first half of the year had led the company increase its full-year guidance to more than $725 million, an increase of 11% over 2011.
Commercial manufacturing (CMO) revenues for the second quarter increased 6.1% to $147 million, while Patheon’s pharmaceutical development services (PDS) operations brought in $34.5 million, a rise of 9.5 per cent.
“Both the CMO and PDS businesses are growing, and the trends that we see set us up for a good year of growth across the board,” said Grant.
Patheon reported a loss of nearly $80 million on the back of charges and consulting fees related to its previously announced restructuring of its operations in Swindon, UK, up from around $10 million a year earlier.
Last month, the company said it would wind down some operations at Swindon and transfer them to other facilities in its manufacturing network, after failing to secure a buyer for the plant. It also plans to move to other facilities most of the product development services work at Swindon that requires commercialisation.
All told, around 90 jobs are set to go at the plant before year-end, with all 400 at risk of redundancy. During the quarter Patheon recorded an impairment charge of $57.9 million related to the Swindon restructuring.
“The 18.9% underlying business growth in the second quarter is very encouraging, as we are winning new business and growing existing customer relationships”, said Patheon’s chief executive James Mullen.
“Our transformation activities are on track and this has contributed to gross profit margin improvement in both businesses”, he added.
Phil Taylor
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